CoreWeave, Inc. Class A Common Stock stock research
FY2025 Q4
CoreWeave, Inc. Class A Common Stock (CRWV) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased, while cost of revenue also rose, resulting in a gross margin that was lower than the prior quarter and the same quarter a year earlier. The relationship shows that cost of revenue grew at a faster pace than revenue, compressing the margin despite higher absolute profitability.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both increased, while cost of revenue also rose, resulting in a gross margin that was lower than the prior quarter and the same quarter a year earlier. The relationship shows that cost of revenue grew at a faster pace than revenue, compressing the margin despite higher absolute profitability.
- The strongest observable driver of the gross margin change was the disproportionate increase in cost of revenue relative to revenue. Although revenue grew, cost of revenue rose at a higher rate, directly weakening the margin.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Versus the same quarter one year earlier, revenue and gross profit were also higher, while gross margin was lower, indicating a mixed performance where top-line growth outpaced margin retention.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.6%
Gross profit
$1.1B
Revenue
$1.6B
Cost of revenue
$509.1M
Quarter-over-quarter change
-5.4 pts
Year-over-year change
-8.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2025 | $982.0M | $720.0M | $262.0M | 73.3% |
| Jun 30, 2025 | $1.2B | $900.1M | $312.7M | 74.2% |
| Sep 30, 2025 | $1.4B | $995.9M | $368.8M | 73.0% |
| Dec 31, 2025 | $1.6B | $1.1B | $509.1M | 67.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-5.4 pts
Year-over-year change
Dec 31, 2024
-8.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin change was the disproportionate increase in cost of revenue relative to revenue. Although revenue grew, cost of revenue rose at a higher rate, directly weakening the margin.
Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Versus the same quarter one year earlier, revenue and gross profit were also higher, while gross margin was lower, indicating a mixed performance where top-line growth outpaced margin retention.
Monitor the trend of cost of revenue as a percentage of revenue, as its recent acceleration relative to revenue growth is the primary factor behind margin compression.